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Yes, a compressor affects the peaks (by attenuating the signal when the peak gets up over the threshold). If you're using a sidechain input, then it doesn't matter what is happening on the channel being operated on - in this example, the bass - the whole bass sound will have it's gain reduced when the sidechain is operating, not just the peaks.
A compressor does just "simply reduce the gain" - that's all a compressor truly does. It reduces the gain when the signal is above the threshold. How it goes about reducing it (how quickly it turns the volume down, how much it turns it down, how quickly it turns it back up after the signal drops back below the threshold) depends on the compressor. Then, of course, you can set the output level/ makeup gain of the compressor to bring the peaks back up where you want them. You squash the peaks, then bring the level up.
To answer the original question - if by bass ducking you mean ducking the whole bass sound, then there is no audible difference between "real sidechain compression" and automating the channel's volume, if you've automated it with the same shape as the compressor settings you'd be using. Generally a compressor is quicker and easier for the purpose - if you want to tweak the settings, you can just tweak them, without drawing in the automation all over again.
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